If you babysit as a job do you have to claim taxes like a W2 or whatever? I want to get a loan but i get paid under the table. if i say i just babysit will that work?
2006-09-22 10:01:55 · 6 answers · asked by C-Baby 3 in Business & Finance ➔ Personal Finance
If you are self-employed and working in the U.S., you are required to pay taxes into your social security account if you earn more than $400 dollars per year. If you do not, you are guilty of tax evasion and can be fined and even jailed (though it's not too likely, really).
Whether your employer reports your income or not is not really your problem.
Even if the income is less than $400, you can always list it on a form. Few banks will confer with the IRS to see if you've been paying your taxes even if it's above that, though you may cause a blip to appear on the radar somewhere... so if you're making a LOT more than $400 a year (not too hard, really) and you want to continue in the underground economy, it would be wise not to mention it to anyone.
Here's a link to government information about it:
http://www.ssa.gov/pubs/10022.html
2006-09-22 10:11:07 · answer #1 · answered by Doctor Why 7 · 0⤊ 0⤋
Even though you don't get a pay stub, you can still file taxes, and you may not have to pay anything, because their are expenses, especially if you watch the kids at your house, because you pay your rent or mortgage, gas, electric, phone, ect, and a quarter of that is considered the cost of running a home business. As well as feeding the kids. You are considered self employed. And filing the taxes aren't that much harder. I have been doing it for years. Just a few extra forms, and if you do it on line with turbo tax or h&r block it cost a few extra dollars, but they figure everything out for you
2006-09-22 19:11:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There is no way in heck that you make enough money babysitting (unless you're a full-time nanny) to owe taxes, so don't bother claiming it. What kind of a loan do you want to get? If they care about your income as far as paying them back is concerned, you're not going to get it with a babysitting job. If it's a school loan they don't care about whether or not you work, only that you will be once you graduate.
2006-09-22 17:10:55 · answer #3 · answered by brainy_ostrich 5 · 0⤊ 2⤋
If you don't pay taxes on the income, than DEFENITLEY DO NOT claim it on a loan application; you'll be asking for the IRS to pay you a visit.
If you want to get the loan next year, claim your babysitting income this year :)
2006-09-22 17:05:15 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I don't think you get a loan on a babysitters income. When you get paid under the table, not qualifying is one of the prices you pay.
2006-09-22 17:09:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Find another JOB!!
2006-09-22 17:09:55 · answer #6 · answered by jlo_ramirez 2 · 0⤊ 2⤋